96 Million DOGE Set to Flood Market—Will Dogecoin Crash or Soar Next?

Dogecoin is facing a critical moment as nearly 96.52 million DOGE, worth about $22.75 million, are scheduled to be unlocked between May 12 and May 19. According to WuBlockchain, this influx of tokens will test the cryptocurrency’s resilience amid broader market volatility.

Although this amount represents only 0.06% of Dogecoin’s total circulating supply, it coincides with major unlock events in other significant tokens such as Aptos (APT), Arbitrum (ARB), Solana (SOL), and Worldcoin (WLD). In total, over $774 million worth of crypto assets are set to be unlocked this week. The timing could lead to a surge in selling pressure across the market.

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Despite these challenges, Dogecoin’s technical performance has been outstanding for the past few weeks. As Dogecoin vaulted over the $0.20 red line and entered the $0.25 territory, it reduced its 100 and 200-day EMAs in its march to the plateau. However, with Dogecoin trading near the significant $0.21 level, where support from the 200 EMA is available, investors ask themselves if Dogecoin can maintain its recent gains.

At the same time, the RSI for DOGE is about 73, which means that the market is already at the edge of a correction. This implies that the market will soon experience a correction, especially with fresh supply coming into the market. If selling rushes in after the unlocking event happens, it is quite likely that DOGE could drop down to $0.20 or even $0.19.

Will Demand Absorb the New Supply, or Will Dogecoin Take a Dive?

Unlock events of this size, while small in percentage terms for Dogecoin, have historically created a significant market impact. As new tokens hit the market, the risk of price declines increases, particularly if support levels fail to hold. The situation could worsen if market sentiment weakens amid broader crypto volatility.

Despite these risks, DOGE could still rally if the unlocked tokens are absorbed smoothly and demand remains strong. The token’s technical strength could prove resilient if it holds above key support levels. On the other hand, if the unlock event triggers a wave of selling pressure, we could see a swift retracement.

With millions of tokens about to enter circulation, the next few days will determine Dogecoin’s short-term future. Will DOGE continue its upward trajectory or face a setback as the market digests the new supply? Only time will tell.

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